These two conditions are generally present when material misstatements due to fraud occur-incentives and opportunities.

Question

Quizplus · Accepted Answer

Incentives and opportunities are two of the three conditions (the third being rationalization) identified by auditors as commonly present when material misstatements due to fraud occur. These conditions increase the likelihood that an individual or entity will engage in fraudulent activity.

These Two Conditions Are Generally Present When Material Misstatements Due